How to let boss know about far too low bonus in HF? 2nd Year analyst at a small HF

So got a 10k bonus on an 85kish base for 2021. We performed let's say 15-25% net. Around 125M AUM. Just me and the PM, and an ops guy. 

I graduated during COVID and joined in 2020, straight out of undergrad. Note I also had no bonus in 2020 as well, no stub bonus.

I had my review on NYE, and the feeling I got from it was honestly a B+ level of performance. And then he hit me with a 10k bonus.

I don't think he knows that pay is stratospheric right now - I was expecting a 30k bonus minimum especially since we did alright, even if we didn't beat the S&P. I think that's still fairly low given you know 1st year IB analysts are all in maybe at 180k, and I'm sure if I really flexed my job search muscles, I could jump to a place making minimum of 175k or so. TBF to him, my job is very lax - maybe 30-40 hours of work a week, and I clock out. No weekend work. 

I think it's a combination of him being kind of cheap, but also being out of touch since he's not a bad guy, and he's a boomer and I think the mindset is just pay what I made out of undergrad. Is there any way to tactfully let him know I was expecting 30k minimum? Or do I just have to leave?

Comments (14)

Jan 3, 2022 - 5:37pm

Honestly like previous said, the best thing to do is have another job offer in hand then come to your reviewer about this, saying something like "I got this job offer paying me this but I don't want to leave, can you up my pay". Obviously not using exactly those words but something similar, it happens a lot in the industry, AM and HF's from what i've seen, but it's quite easy to renegotiate for higher pay especially when you can point to your value and obviously having a higher paid offer elsewhere.

Jan 9, 2022 - 5:51pm

Getting offers is a good idea but depending on your non-compete, it might be better to just take the new position rather than try to negotiate with your current boss. If your current boss is cheap, then he'll always low-ball you and in a couple of years you'll be back in the same position that you are now.

Most Helpful
Jan 10, 2022 - 11:57am

You are in a buy side seat learning how to invest in the public markets from a professional. You say you work 30-40 hours per week and the environment is nice. Why in God's name would you want to go to an IB to rearrange logos on a power point presentation at 3 in the morning for a few extra bucks (that will be eaten by taxes anyway). My gut feeling is, at 125m AUM, this fund isn't going anywhere but it could be a nice place to learn and build up a skill set that takes you to your next buy side gig. Focus on learning the skills you need to be a good investor in your 20's/early 30's and the comp will come later on.  

  • 5
  • Associate 1 in PE - LBOs
Jan 10, 2022 - 9:20pm

I agree with this mentality that you shouldn't necessarily chase money but with recent comp increases A1 (at top BB/EBs) are getting $200k+ and if OP is working for this PM for 2-3 years (2020-2022) and getting $100k annually ($85k+ $10k rounded up) that's $300-400k difference overtime (assuming A2A promote) so I can certainly understand OP's frustrations

  • Analyst 2 in HF - EquityHedge
Jan 10, 2022 - 8:22pm

125m barely keeps the light on in NYC. Why would you join a fund at that size out of undergrad? best bet is to recruit to a pod or long only as a research associate 

  • PM in HF - Other
Jan 10, 2022 - 9:27pm

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